The history of life insurance has always been an indemnification product to protect beneficiaries from the demise of the domestic bread winner, business partner and charitable donor. Only in the last 40 years has cash value life insurance taken the additional role of supplemental income. Permanent cash value life insurance as par whole life, current assumption and indexed universal are classified as saving products. Whereas variable universal life, a security, with separate sub accounts offering equity and bond instruments is an investment.
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
Life Insurance comes in many forms and is constantly evolving, but the bottom line is that Life Insurance should not be considered an investment product. There are types of contracts that build inside cash through variable interest rates or dividend structures or separate accounts, but these are side benefits to the most important reason to have life insurance.
Life insurance provides some measure of financial security to your loved ones should you die too soon. That is it's most important job. Keep in mind as well that Life Insurance proceeds pass directly to your beneficiary. They cannot be attached by creditors nor are the direct proceeds taxable.
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Life insurance provides some measure of financial security to your loved ones should you die too soon. That is it's most important job. Keep in mind as well that Life Insurance proceeds pass directly to your beneficiary. They cannot be attached by creditors nor are the direct proceeds taxable.